Harvard Business Review. Sept-Oct, 2017, Vol. 95 Issue 5, p128, 8 p.
Company business management, Management science -- Evaluation, Management science -- Practice, Decision-making -- Methods, Decision-making -- Models, Decision-making -- Management, Big data -- Usage, Big data -- Evaluation, and Managers -- Vocational guidance
The rise of big data has bolstered the presumption that business decisions should be made using scientific analysis. However, this approach can reduce strategic options and impede innovation. This is because the scientific method is meant for understanding phenomena that do not change, but is not designed to assess things that as yet do not exist. To make effective decisions about possibilities, managers should compose narratives about potential outcomes using the Aristotelian principles of logic, metaphor, and emotion. Next, managers should hypothesize what would be necessary for the narratives to occur, and validate these hypotheses via prototyping.
Harvard Business Review. May 2011, Vol. 89 Issue 5, p100, 6 p.
Risk management, Company business management, Risk management -- Methods, Value chain -- Management, Business -- Models, Business -- Comparative analysis, and Business -- Management
The most effective way to innovate one's business model is to identify where risk is located in the organization's value chain. Once these are identified, it must be determined whether they can be reduced, shifted to others, or personally assumed. This method eliminates the need for prototyping or extensive experimentation for significant innovations.
Harvard Business Review. Dec 2011, Vol. 89 Issue 12, p40, 1 p.
Time to market, Company business management, Design services -- Product development, Business creativity -- Management, Product development -- Management, Engineering design -- Models, and Engineering design -- Management
Prototyping offers a time-effective and cost-effective means of testing multiple variations of new products and solutions with small groups. The process eliminates a lengthy vetting process that can ultimately fail if a crucial component is overlooked.